Jamba Juice JMBA 0.00% , announced the completion of its refranchise initiative, originally announced in May 2009, with the sale of 41 stores in the Chicago/Minneapolis markets to J J Maa, Inc. The Company was successful in completing the sale of 173 stores, exceeding the original goal to refranchise up to 150 stores primarily outside of California. In conjunction with several of the refranchise transactions, development agreements for an aggregate of 52 additional new Jamba Juice stores were entered into as well as commitments to refresh and refurbish select mature stores.
"To have exceeded our goal is a significant accomplishment. I could not be more proud of the entire team. Refranchising these stores will allow us to better focus our operational resources on our Company-owned stores in California and New York and improve efficiencies and performance. It also creates a business shift to an asset-light business model that is less capital intensive," stated James D. White, chairman, president, and chief executive officer, Jamba Juice Company. "We were able to find new or existing highly qualified and successful franchisees who wanted to be a part of the Jamba team. We welcome all of our new franchisees into the system and look forward to working with them in their respective markets."
The Company believes that the completion of the refranchise initiative better positions Jamba for accelerated growth, will increase brand presence and market share, will provide the Company with greater overall margins and reduce capital outlays.
About Jamba, Inc.
Jamba, Inc. is a holding company and through its wholly owned subsidiary, Jamba Juice Company, owns and franchises JAMBA JUICE(R) stores. Founded in 1990, Jamba Juice is a leading restaurant retailer of better-for-you food and beverage offerings, including great tasting fruit smoothies, juices and teas, hot oatmeal made with organic steel cut oats, wraps, salads, sandwiches, and California Flatbreads(TM), and a variety of baked goods and snacks. As of April 18, 2011, Jamba Juice had 744 locations consisting of 308 Company-owned and operated stores and 436 franchise stores. For the nearest location or a complete menu, visit the Jamba Juice website at www.jambajuice.com or call 1-866-4R-FRUIT (473-7848).